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Robust Econometrics for Growth-at-Risk

Tobias Adrian, Yuya Sasaki, Yulong Wang

arXiv 1 Aug 2025 · Econometrics · publishedJournal of Econometrics (2026)

arXiv:2508.00263 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The Growth-at-Risk (GaR) framework has garnered attention in recent econometric literature, yet current approaches implicitly assume a constant Pareto exponent. We introduce novel and robust econometrics to estimate the tails of GaR based on a rigorous theoretical framework and establish validity and effectiveness. Simulations demonstrate consistent outperformance relative to existing alternatives in terms of predictive accuracy. We perform a long-term GaR analysis that provides accurate and insightful predictions, effectively capturing financial anomalies better than current methods.

Citation extraction

19
references
42
in-text mentions
19
distinct cited
3
self-citations
9,497
main-text words

appendix boundary found by appendix_command · 67% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Adrian, Tobias and Boyarchenko, Nina and Giannone, Domenico (2019) Vulnerable growth self0.94613685%
2Wang, Hansheng and Tsai, Chih-Ling (2009) Tail index regression0.9416383%
3Adrian, Tobias and Brunnermeier, Markus K (2016) CoVaR self0.64422100%
4Adrian, Tobias and Boyarchenko, Nina and Giannone, Domenico and Lian… (2022) The term structure of growth-at-risk self0.64422100%
5Loria, Francesca and Matthes, Christian and Zhang, Donghai (2022) Inflation at risk0.64422100%
6Ramey, Valerie A. and Zubairy, Sarah (2018) Government spending multipliers in good times and in bad: evidence from US historical data0.64422100%
7Wang, Huixia Judy and Li, Deyuan (2013) Estimation of extreme conditional quantiles through power transformation0.64422100%
8de Haan, Laurens and Ferreira, Ana (2006) Extreme Value Theory: An Introduction0.5112250%
9Gächter, Martin and Hasler, Elias and Huber, Florian (2025) A tale of two tails: 130 years of growth at risk0.40511100%
10Arcones, Miguel Angel and Yu, Bin (1994) Central limit theorems for empirical and U-processes of stationary mixing sequences0.40511100%

Showing the top 10 of 19 scored citations.